Combining mortgages allows the homeowner to pay a single, low-interest rate mortgage payment.
Whether or not combining first and second mortgages into a single payment is a good idea depends on several factors: How much equity you have in your home, the amount of your second mortgage, the length of time that passed since you secured the second mortgage and the homeowners current credit score.
Take a look at your financial situation now, then figure out what it would be like if you were to refinance your second mortgage.
Some buyers find that they have built equity in the home a few years after buying it using an FHA mortgage.
Furthermore, if your financial situation has recently changed then refinancing your second mortgage can help you renegotiate the term of your loan.
In certain cases you might also be able to consolidate your first and second mortgages into one loan.
Combining 1st and 2nd mortgages into one can be a positive experience.
Apply for a mortgage refinance loan with your current mortgage lender.Request information on mortgage refinancing and tell the lender that you want to combine your first and second mortgages into a single loan.Fill out a mortgage application, known as the Uniform Residential Loan Application.Be sure to include your full legal name, date of birth, and two year's worth of residence, employment and income history.As a homeowner it’s always a good idea to understand all the ins and outs of mortgages, including how to refinance both a first and a second mortgage.